This document presents an addendum to the Resettlement Action Plans for the rehabilitation of the Chakdara-Shamozai and Shamozai-Dadahara road sections in Khyber Pakhtunkhwa. The addendum was required due to additional impacts identified, including the displacement of 17 structures and 40 trees. The structures affected include 4 shops, 9 homes, 2 mosque areas, and 2 house walls. No relocation of residents or businesses will be required. The addendum provides details of compensation and assistance to mitigate impacts on affected persons.

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EMERGANCY ROAD RECOVERY PROJECT (ERRP)
KHYBER PAKHTUNKHWA
SHAMOZAI - DADHARA AND CHAKDARA - SHAMOZAI ROAD SECTIONS
ADDENDUM TO RESETTLEMENT ACTION PLANS
PACKAGE - II & III
APRIL 2015
EXECUTIVE SUMMARY
ES-1 This document presents the Addendum to the Resettlement Action Plans of both
Chakdara-Shamozai and Shamozai-Dadahara Roads, under up-gradation / rehabilitation with
the assistance of the World Bank’s administered Multi Donor Trust Fund (MDTF). The up
gradation / rehabilitation of these roads will greatly improve the socio-economic conditions of
the area. The need for Addendum arose due to unforeseen additional impacts expected to be
occurred under these projects. The purpose of Addendum is to mitigate all social adverse
impacts through compensation payment to the project affected persons.
ES-2 The existing Right of Way (RoW) is enough to accommodate the up-gradation and new
construction. Hence, no extra private land will be required to improve the road geometrics, but
17 structures and 40 wood trees on the encroached area will be affected, at several scattered
places along the road. All structures will be severely affected. According to final inventory
survey, the structures to be affected are 4 shops of micro business operators, 9 residential
structures, 2 mosques (ablution place of a mosque and prayer platform of the other mosque)
and 2 boundary walls of houses. No vendors or squatter will be affected and impact assessment
survey revealed that none of the PAPs fall under the category of vulnerable and none of
affected persons of residential houses and shops require relocation. The addendum describes
in detail, the compensation and rehabilitation assistance to be provided to affected persons to
mitigate the impacts of damages, and for restoration of all impacted structures and income loss
due to uprooting of wood trees.

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1.0 INTRODUCTION
1. Package II and III of Khyber Pakhtunkhwa–Emergency Roads Recovery Project (KP-
ERRP), are two road sections being executed by Khyber Pakhtunkhwa Highway Authority
(PkHA), an autonomous provincial roads organization of the GoKP. Both the projects focus on
early recovery priorities agreed between the Government of Khyber Pakhtunkhwa (GoKP) and
the Multi Donor Trust Fund (MDTF) to be funded through World Bank. Package II is
“Rehabilitation and Up-gradation of 14.7 Km long Shamozai-Dadahara Road Section” and
Package-III is “Rehabilitation and Up-gradation of 10.7 Km long Chakdara-Shamozai Road
Section”. Both the sections are located on Chakdara-Madyan Provincial Highway (S–3B),
having a total length of 88 Km. This provincial highway passes through several towns of Swat
and connects the valley with the rest of country through N–45, a National Highway. The Project
Development Objective (PDO) is to enable the population along the Project corridor to benefit
from year round improved access and mobility through reconstruction of priority damaged roads
and bridges in the conflict hit areas. The expected outcome is improved traffic flow resulting in
reduced vehicle operating costs and travel time for the road users. Completion period for
Package II as well as Package III is 18 months. Social Impact Assessment and Resettlement
Action Plans (SIA / RAP), separately for both the projects were prepared. Project
implementation commenced in January 01, 2014 and completion date will be June 30, 2015.
RAP implementation is also in process. This document presents the Addendum to the
Resettlement Action Plans of both Chakdara-Shamozai and Chakdara-Madyan Roads. The
need for Addendum arose due to unforeseen additional impacts expected to be occurred under
these projects. The purpose of Addendum is to mitigate all social adverse impacts through
compensation payment to the project affected persons.
2.0 THE BACKGROUND OF ADDENDUM
2. SIA / RAP for both the projects was prepared by PkHA with the consultancy input of
(ACE–TESD). The study emerges out of field based survey and public consultation with Project
Affected Persons (PAPs), community activists and government functionaries. The Addendum
provides necessary details of project impacts and compensation entitlements, resettlement and
rehabilitation measures including (i) the type and extent of losses; (ii) the policy framework for
compensation payments, income restoration, relocation and rehabilitation; (iii) mechanisms for
timely disclosure of information to the affected persons and other stakeholders (iv) institutional
framework for participation and implementation; (v) grievance redress mechanism (vi)
responsibilities for internal and external monitoring of implementation process (vii) estimated
resettlement budget and implementation schedule. The above provisions are in line with the
provisions provided in main RAPs for Project Affected Persons
3. Addendum to RAPs was based on consolidation of census survey of 100% losses of
Project Affected Persons’ (PAPs) assets, socio-economic survey of 50% affected households
(AHHs), socio-economic profiling of every settlement lying on the road and on-going
consultations through meetings, interviews, focus group discussions with the AFs / PAPs and
other stakeholders, in accordance with the World Bank Policy 4.12 on Involuntary Resettlement.
This policy aims to avoid land acquisition and limit the dislocation. Hence at the initial designing
stage of the KP-ERRP roads, initially PkHA considered full RoW width (15 m) for road

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improvement works, where there were no resettlement issues. At build-up areas where RoW
has been encroached by the people, the road improvement works were confined to the COI
instead of taking full width of RoW. It was to be ensured that required COI (7.3 m) is available at
the build-up areas to make the road improvements as per design.
3.0 RATIONAL FOR ADDENDUM:
4. The need of Addendum to Resettlement Action Plans (RAPs) of both Shamozai-
Dadahara and Chakdara-Shamozai Road Sections emerged out primarily due to the
geometrical changes in alignment and straightening up of curves at various locations of the
project. PkHA project management has visited the project site and identified the affected
structures, channels and trees at various chainage. These were recorded with photographs of
each location and each affected structure / asset was marked on the design sheet. And later,
the Resettlement Specialist under the Supervision Consultant verified the impacts through
impact assessment survey.
4.0 DETAIL OF ADDITIONAL IMPACTS ON STRUCTURES AND TREES
5. According to the final inventory survey of additional impacts, of Shamozai-Dadahara and
Chakdara-Shamozai Roads Resettlement Action plans, the roads rehabilitation works will cause
damages to 17 structures and 40 wood trees. The detail of structures to be damaged include 04
micro businesses, 09 residential units, 2 boundary walls of houses and 2 mosques (prayer
platform of one and ablution palace of other). All structures will be severely damaged. The
project needed of up-rooting of privately owned 40 wood trees, scattered along the road.
6. The removal of these trees will have minor impact on the source of income of the
owners / cultivators. No squatters or vendors will be affected. The impact assessment reveals
that no vendors or squatter will be affected and none of the PAPs fall under the category of
vulnerable, and none of affected persons of residential houses and shops require relocation.
There will be no impact on cultural heritage and no indigenous people residing in the
settlements along the road based on the World Bank screening, conducted in the past. No
additional public utilities are to be affected. The detail of impacts and their extent is shown the
Table – 4.1 below :
TABLE – 4.1 : SUMMARY OF ADDITIONAL IMPACTS
SR. NO.
TYPE OF ASSETS TO BE
AFFECTED
NUMBER
EXTENT OF IMPACT
(MINOR / SIGNIFICANT / SEVERE)
1. Shop 4 Severe
2. Residential Structure 11 Severe
3. Boundary Walls of Houses 2 Severe
4. Mosques 2 Severe
5. Wood Trees 40 Severe
TOTAL 17 NO. STRUCTURES &

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40 NO. WOOD TREES
5.0 RESETTLEMENT POLICY FRAMEWORK & ENTITLEMENT MATRIX
7. Taking into account the requirements of the ESSAF (Environment and Social Screening
and Assessment Framework, developed for all projects under MDTF) guidelines and the World
Bank OP4.12, the following basic principles were devised for the preparation of RAP and also
followed in the preparation of the Addendum:
(a) The negative impacts on PAPs would be avoided or minimized as much as possible;
(b) Where the negative impacts are unavoidable, the project–affected persons will be
assisted in improving or regaining their standard of living. Vulnerable groups will be
identified and assisted to improve their standard of living;
(c) The PkHA will make cash compensation to the PAPs for their affected structures and
assets falling within the RoW.
(d) The PkHA will ensure that as far as possible the vulnerable PAPs will receive some
financial relief from the project. This will include one–time lump sum assistance equal to
one month’s inflation adjusted OPL, in addition to other admissible compensation /
allowances.
(e) The owners of affected structures, in addition to cash compensation for the structure on
replacement cost, will be allowed to salvage their building material. This applies to the
owners of all categories of immovable structures.
(f) Rehabilitation assistance i.e., compensation for lost business and workdays (including
employees) due to relocation and disruption of business enterprise will be paid.
(g) Before taking possession of the encroached land, compensation assistance will be
made in accordance with the Bank policy.
(h) Appropriate grievance redress mechanism will be established at the project level to
ensure speedy resolution of disputes / disagreements.
6.0 COMPENSATION ELIGIBILITY
8. PAPs are identified as persons whose structures / assets and source of livelihood will be
directly affected by the project due to road improvement works. All PAPs identified along the
project corridor are losing a small part of their micro business structures / shops, residential
houses, boundary walls of residential houses, trees or encroached cropped area. All identified
PAPs are encroaches on the government owned RoW. They also includes tenants whether
registered or not and PAPs losing business, income and sources of livelihood. The all affected
water channels will be immediately restored by the civil works contractor(s). Compensation
eligibility is attached with the cut–off date that has been announced as 12-02-2015.
6.1 COMPENSATION ENTITLEMENTSCOMPENSATION ELIGIBILITY
9. Only these affected persons will be eligible for the compensation payments, whose
details have been recorded in the inventory survey of this Addendum. The cut-off date for
eligibility of compensations has been announced as 12-02-2015 which is the date of start of
social impact assessment survey.
6.1.1 Entitlement Provisions

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10. For PAPs losing structures, assets, income; and entitled for rehabilitation subsidies,
included residential and commercial structures losses, crop and wood trees losses, restoration
of public utilities and water channels; and allowance for temporary business disruption based on
tax declarations and / or lump sums, in case of non–availability of such documentation, in
accordance with the inflation adjusted official Poverty Line (OPL). Project impacts have been
divided into minor, significant and severe categories keeping in view the extent of impact on the
affected assets / income. The minor impact is that where the impact on an asset or income is
less than 10 %. The significant impact category denotes the impact as more than 10% but less
than 25% and severe impact is where a structure / asset / income is impacted by more than
25%. The additional impacts of the project, to be mitigated / compensated under this
addendum, will cause minor impacts on structures and income of PAPs.
6.1.2 Micro Business Operators
11. The Micro business operators are entitled for full compensation for the total covered
area of the affected shop at replacement cost basis, to fully restore the remaining structures,
livelihood allowance for the period of business interruption to meet living expenses equal to 02
months of inflation adjusted OPL, one-time shifting allowance @ Rs. 11,400/- on lump sum
basis and additional one month of inflation adjusted OPL allowance in case of vulnerable APs
while no vulnerable APs identified during the SIA survey.
6.1.3 Loss of Houses / Structures
12. The PAPs who have encroached PKHA ROW will receive compensation for the loss of
damage to structures at market / replacement cost to restore remaining structure.
6.1.4 Crop Losses to Encroachers of Agricultural Land within the RoW
13. The encroacher farmers will be provided with one-time cash compensation at current
market rates equal to annual gross harvest, for loss of source of income. The cultivators of
wood trees will be paid cash compensation at market rate, based on type and age of the
affected trees.
7.0 ENTITLEMENT MATRIX
14. Based on the above discussed eligibility criteria and compensation entitlements and
keeping in view the nature of additional losses under the both sections of the project, the
following Entitlement Matrix (EM) adopted for the project.

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TABLE – 7.1 : ENTITLEMENT MATRIX
TYPE OF LOSS ELIGIBILITY COMPENSATION ENTITLEMENTS
Loss of Housing,
Business
Damages to
Housing /
Business
Structures on
Encroached
Land
All PAPs, who have extended their structures on PkHA ROW,
will receive compensation for the loss of damage to structures
at market based replacement cost, to restore remaining
structure, as per current Market Rates System of GoKP, but
are not eligible for compensation against loss of land within
the ROW. Salvage material will be the property of APs.
Wood Trees
Cultivators of
Trees
All PAPs who have used PkHA ROW for tree plantation, will
be given cash compensation @ Rs. 2,000/– per tree, at
average market rate, fixed on the basis of impact assessment
survey and discussions with the Forest Department officials,
in consultation with cultivators of trees. Cut off trees will be
the property of affected cultivators.
Loss of
Livelihood
Micro
Business
Operators
Micro Business operators will receive transitional livelihood
allowance equal to the inflation adjusted OPL1
to meet living
expenses for business interruption, for a period of 2 months
@ Rs. 27,248/– per month (27,248*2 = Rs. 54,496/– in total).
Temporary
Shifting
Micro
Business
Operators
Micro business operators will receive Rs. 11,400/- (one time
cost) as shifting allowance for two-time transport their
business goods before and after reconstruction. The amount
has been determined on the basis of discussions with the mini
trucks / tractor trolley operators in the area.
Temporary
Acquisition of
Private Land
Owners of
Land
Contractor(s) will pay rent against temporary acquisition of
private land, if require for sub-camp, plants or other
construction activities.
Unanticipated
Adverse Impacts
PkHA will deal with any unanticipated adverse impacts of the project during
project implementation in the letter and spirit of the principles laid down in
ESSAF and OP 4.12 of the World Bank.
7.1 BASIS OF RESETTLEMENT COSTS AND UNIT RATES FOR COMPENSATION
15. The unit rates applied in the determining the resettlement costs is elaborated as follows.
7.1.1 Unit Rate for Residential and Business Structures
1
. The OPL of Rs. 879 per capita / month were announced by the government in 2004–2005 (Pakistan
Economic Survey, 2005–06, Table 41). The latest estimate of inflation–adjusted poverty line per
capita per month comes to Rs. 1734.52 in 2011. By taking the av. household size as 6.89 persons,
the amount comes to Rs. 11,951/-.

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16. Full compensation to be given for the total covered area of the structure at replacement
value. This includes the provision for the affected covered area for restoration. PKHA committed
to provide compensation of various construction types of structures on the basis of Govt. of KPK
Market Rates System 2015 which is the latest available version. In addition, discussions with
the engineers of Works and Services Department of Swat District were also made besides
collecting the information from the affected persons in this respect. To estimate the replacement
value of residential and commercial structures, the assets have been standardized for
compensation on an average unit rate per sq. ft. The affected structures are divided into 4
categories based on the type of construction material, detail of categories of unit rates are
provided below :
TABLE – 7.2 : STRUCTURES TYPES AND THEIR UNIT RATES
CATEGORY DETAILS
RATE/FT²
(RS.)
REFERENCES
A
Roof = RCC; Walls = Burnt Bricks in Cement
Mortar, Cement Plastered; Floor = Concrete
1524 MRS(KP) 2013
B
Roof = Steel Girder + T–iron with Wooden
Planks; Walls = Burnt Bricks in Cement
Mortar, Cement Plastered; Floor = Plain
Cement
1531 MRS(KP) 2013
C
Roof = Wooden Girder + Wooden Ribs with
Wooden Planks; Walls = Stone Masonry in
Mud Mortar; Floor = Brick or Stone
800
Modifying
previously
Quoted Rates by
considering
Inflation @ 7%
P.A
D
Roof = Steel Sheets; Walls = Wooden Planks
or Stone Masonry in Mud; Floor = Brick or
Stone
630
Ablution Room
Walls=BB in CSM, Cement, Plaster,
Concrete floor
860 MRS(KP) 2013
Prayer Platform Concrete floor 134 MRS(KP) 2013
BB Wall Height 11.5’, Thickness 9’’ 2340 per R.ft MRS(KP) 2013
Stone Wall Height 10’, Thickness 18’’ 1540 per R.ft MRS(KP) 2013
7.1.2 Unit Rate for Wood Trees
17. Data with respect to the type, number, age and ownership of trees was collected during
the Census Survey for the Addendum to the RAPs. Under both of the projects different types of
privately owned wood trees will be affected. All the affected trees are mostly at the pole stage
with average age ranging between 8 – 13 years. This information was shared with the Forest
Department of Govt. of KPK and the owners of private forests. As a result of the discussions
and consultations, the average price / tree determined as Rs. 2000/–, (on the basis of average
firewood per tree). Average weight of firewood from this size of trees is 3 mounds’ Rs. 600/–

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mound (600 x 3) = Rs. 1800/– says 2000 in total per tree. The wood of trees will be kept by the
affected cultivators.
8.0 PUBLIC CONSULTATION AND DISCLOSURE
18. Public consultation with project stakeholders was carried out during the preparation of
SIA / RAP. Compensation strategy was discussed in detail with the owners of the affected
houses and they showed their willingness to receive the proposed compensation for
reconstruction of their houses within the same premises and against loss of other assets. The
details of compensation payments for each type of construction have been provided in
Annexure–I. Public consultation and disclosure of information continued during the
implementation phase as well. Resettlement Specialist jointly with PkHA Social & Resettlement
staff and supervision consultant staff, held meetings with the APC members as well as with
PAPs to debrief them over resettlement impacts and compensation entitlements. The meetings
helped in increasing coordination of APC members with PkHA and consultant staff. The
outcome of these consultation resulted in reducing concerns of potentially PAPs. PkHA posted
brochure consisting of summary of relevant RAP in Urdu to all the PAPs, through registered
post. The same is sampled checked by Resettlement Specialist in the field and it was found
available with the PAPs. SIA / RAP report and its annexure are posted on the website of PkHA
for information disclosure to wider audience especially for the local people living in the area,
indirectly or directly being benefitted or affected from the additional impacts of both project
sections. For addendum public consultation meetings were held with members of APC as well
as affected PAPs taking into account the public consultation deemed essential for compliance of
the requirements of World Bank.
9.0 GRIEVANCE REDERSSAL MECHANISM
19. The same Grievance Rederssal Mechanism, developed and adopted by PkHA will be
applicable to this addendum. It will provide a public forum to the aggrieved persons to raise their
objections and register complaints and to get reddressal. A project level Grievance Redress
Committee (GRC) established and has been working at PkHA Headquarter (HQ) level, which is
headed by the Project Director. Another GRC established and has been at the field level,
headed by the Deputy Director (E&R) of PkHA.
10.0 MONITORING & EVALUATION
20. The same internal and external monitoring arrangements devised for the RAPs
implementation monitoring, will be applicable to the implementation of Addendum. Project
Director is responsible for internal Monitoring and Evaluation, but Deputy Director-(E&R) is
responsible to monitor implementation in the field and reporting to the Project Director. The
Project Director integrates monitoring reports in the main monthly reports of the project. The
Resettlement Specialist of Supervision Consultant is to carry out a final evaluation at the end of
the Project. In addition, to external monitoring, PkHA is to engage an independent agency (an
NGO, an academic institute or an individual consultant) to conduct 3rd party validation of
addendum implementation.
11.0 IMPLEMENTATION SCHEDULE

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21. The implementation process of this addendum will be commenced in the last week of
April 2015, after the disclosure of final addendum at the website of PkHA and to the project
affected persons and the preparation of an information brochure based on the summary of this
addendum and its distribution to each PAP. The brochure will carry information on the project,
summary of impacts enlisted in the Addendum, entitlements, procedures and timeline for
compensation and the process of grievance redressal. The brochure will be prepared in English
and translated in Urdu for dissemination to the PAPs. The implementation process of addendum
will be completed in May 2015.
12.0 BUDGET
22. Implementation of the addendum will be completed in a month starting from April 2015
and ending in May 2015. The cost of affected assets will be financed through the project grant
under MDTF. The total estimated cost of the additional cases given in the addendum is
calculated as Rs. 9.25 Million / US$ 0.0925 Million. Loss wise cost is given in the table below :
TABLE – 12.1 : STRUCTURES TYPES AND THEIR UNIT RATES
SR. NO. DESCRIPTION
BUDGETED AMOUNT
(RS.)
1. Compensation for Wood Trees 80,000
2. Compensation for Structures 7,242,803
3. Livelihood & Shifting Allowances 245,234
4. Severe Impact Allowances 1,062,683
5. House Rent 246,240
6. Self-Relocation Allowances 228,000
7. Shifting Allowances 148,200
TOTAL 9,253,160

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ANNEXURE – I
ADDITIONAL CASES OF COMPENSATION FOR AFFECTED TREES AND STRUCTURES – SHAMOZAI – DADAHARA SECTION (14.7 KM.)